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Hitachi Rail Europe’s landmark train factory is “here to stay” - and a strong regional supply chain will be “very important” according to its global boss.

The Japanese multinational has brought train building “full circle” back to its birthplace with the official opening of its landmark factory in Newton Aycliffe - unveiled by PM David Cameron.

The £82m facility will create 730 jobs and thousands more in the supply chain, with more than 90% of workers coming from within 50 miles of the plant.

The contract to build the high-speed trains for the Intercity Express Programme and ScotRail were the triggers for the investment - but it is hoped the new plant will be the “engine room” for driving Hitachi’s growth across the UK, according to the firm.

Mr Cameron said the new factory was “effectively bringing train manufacturing back to the North East”.

Hitachi Rail Europe's £82 million Rail Vehicle Manufacturing Facility

Speaking to some 500 guests at the official ceremony, he said: “In the past few years we have seen the North East on the rise.

“That is happening because great businesses like Hitachi have confidence in this area.”

Hiroaki Nakanishi, CEO of Hitachi, said: “We are combining the best of Japanese technology with the best of British manufacturing to make these trains.

“As a business, it’s our culture to take a long term view, from our investment in Newton Aycliffe to plans to extend across the UK.

“A strong regional supply chain is also very important for our activities here.

“I’m very proud to say Hitachi is here to stay for a long time.”

Mr Cameron was joined by Chancellor George Osborne, who was in the region to see the next generation of Nissan Juke production at the car-maker’s Sunderland factory.

He said: “I was not going to miss this for the world, this is Hitachi’s first factory in Europe, their massive investment is a sign of their commitment to the UK and a real show of confidence in our economy and the North-east.”

The plant features 7,000 metres of sidings and a 1km long overhead electrified test track.

Alastair Dormer, CEO of Hitachi Rail Europe, said: “This plant at Newton Aycliffe will be the ‘engine room’ for driving Hitachi’s future growth across the UK.

“Many people worked extremely hard to deliver this fantastic facility and make it a reality.

“In a year’s time, this facility will be full of trains and people working in a wonderful environment.

“Over 95% of the spend for this facility has been spent in a 50-mile radius of the factory.

“This plant will be the engine room for driving our future growth across the UK and into Europe.

“It’s incredibly important to have this facility to invite customers to view our capabilities and products and open the door for much, much more growth.”

The massive factory was the culmination of a six-year hard-fought campaign.

By the time Hitachi had secured the key contract to build the rolling stock for the Government’s Intercity Express Programme, a list of more than 40 potential UK sites for its factory had been drawn up - but Newton Aycliffe did not even feature on the original list.

Sedgefield Labour MP, Phil Wilson, who helped lead the campaign, said: “This has come about because of the best efforts of the developer, Merchant Place, [then Regional Development Agency] One North East and Durham County Council, they encouraged Hitachi to select Newton Aycliffe.

“The history of train-building in the area was not lost on Hitachi,” he added.

David Cameron at the Hitachi opening at Newton Aycliffe

“In 2010, everyone was concerned the area would be faced by cuts. We launched the campaign in the North-east to put the case as to why the factory should go ahead - because of the impact on jobs.

“The North-east was due to be hardest hit, and we wanted to make sure the factory went ahead. Thankfully, we won the campaign.

“Hitachi has since won other contracts, the technical college will be built next year - it’s meant a great deal and put us on the map.

“We provided government with as much information as we could about the potential impact, put forward a very balanced and reasonable case and I’m pleased to say it won the day.

“The low-point was when we just weren’t getting a decision - we thought they were building up to say no.

“But we kept the pressure up.

“This is bringing train building back home - literally. This month it’s 190 years since John Stephenson assembled Locomotion number 1, the pub made up of the old ticket office and waiting room is on the corner of the factory site.”